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Sun Dec 25, 2016, 02:51 PM

Are you turning 70 1/2 this year? Do you have IRA, 401K?

You need to take the required withdrawal. If not, there is fifty! percent penalty.

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Reply Are you turning 70 1/2 this year? Do you have IRA, 401K? (Original post)
question everything Dec 2016 OP
CountAllVotes Sep 2018 #1
question everything Sep 2018 #2
CountAllVotes Sep 2018 #3

Response to question everything (Original post)

Sat Sep 29, 2018, 11:37 AM

1. What is the "required withdrawal"?

Do you happen to know?

I have a rather small IRA and I rather doubt I'll see 70-1/2.

However, it is a possibility!

Thanks for the info.!


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Response to CountAllVotes (Reply #1)

Sat Sep 29, 2018, 12:32 PM

2. IRS Publication 590-B gives detailed instructions

Since contributions to IRA reduced taxable income, at some point tax is due. And this is the year when one turns 70-1/2. The institution where the funds are kept should notify you, also calculate the amount. Not so straight forward, and the publication has examples. Spouse's birthday was June so had to start taking that year. Mine was August, so waited for the following year.

This publication has several tables on how to calculate the amount. Different when the spouses are more than 10 years apart in age.

It depends on the amount one had on Dec. 31st the previous year.

We use Appendix B, Table III.

Thus, for the first year, 70 the amount to be withdrawn is the amount at the end of the year divided by 27.4.

If you had $10,000, you will have to withdraw $365 for that year. For the following year, the denominator is 26.5 and so forth.

And I do hope you will reach way beyond 70 1/2!

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Response to question everything (Reply #2)

Sat Sep 29, 2018, 01:25 PM

3. Thank you!

My husband is almost 20 years older than I am but he has no IRA to draw off of.

In any event, I may be around at 70-1/2 but I've been told I'd live to be abt. 10 years less that my parents did. One died at 75; the other at 77.

Grandparents are no better (63 grandfather; 62 grandmother).

I'll have to hit it before 70-1/2 I think. So difficult to plan for such things!

Thanks again!

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